IEA Warns World Has Just Weeks to Avoid Hormuz Economic Shock
IEA Warns World Has Just Weeks to Avoid Hormuz Economic Shock What I Cover Tsvetana Paraskova is an energy and commodities journalist who has contributed to Oilprice.com for nearly a decade, covering global energy markets, commodities,… The world has just a few weeks before taking an economic toll from the re-escalation in the Middle East and the new halt to tanker traffic through the Strait of Hormuz, according to Fatih Birol, the Executive Director of the International Energy Agency (IEA).
The situation in the region has sharply deteriorated in the past week as Iran struck commercial vessels transiting the Strait of Hormuz, includingtwo supertankersoperated by the Abu Dhabi national oil company of the UAE, and the U.S.
carried out a series of strikes on Iran and reinstated a naval blockade to prevent Iran-linked tankers from loading and exporting Iran’s oil.
Tanker traffic through Hormuz, which had just started to rebound in the three weeks following the signing of the U.S.-Iran memorandum of understanding, came to an abrupt halt late last week, with daily transits plungingto five-week lows.
The previous rush of Middle Eastern producers to evacuate their oil amassed in the Gulf since the war began has stopped, andoil priceshave risen by about 13% since last Friday.
The oil, bond, and equity markets started pricing in additional disruption to oil flows, and economists and governments are bracing themselves for another fuel price and inflation spike.
“If the Strait of Hormuz remains closed we may again have some difficulty for global economies, including those in the region and developing nations and Asia,” Birol toldBloombergin an interview published on Thursday.
“It is not months, it is weeks” after which the strait needs to be “fully open, unconditionally open,” to spare the global economy from new challenges and slowdown, the head of the IEA said.
Currently, the real stress in the oil market is not crude, but very tight fuel markets, economists and oil analysts say.
Meanwhile, Arsenio Dominguez, the Secretary General of the United Nations’ International Maritime Organization (IMO), said that navigation through the Strait of Hormuz is nowtoo dangerousfor ship owners and operators to brave the chokepoint.
Strikes Iran-Linked Tanker Near Kharg Island What I Cover Tsvetana Paraskova is an energy and commodities journalist who has contributed to Oilprice.com for nearly a decade, covering global energy markets, commodities,… Oil Prices Rebound as U.S.-Iran Peace Talks Are Postponed ING: Oil Prices Have Overshot To The Downside Russia’s Oil Windfall Vanishes as Urals Crashes to $42 a Barrel Iran Tightens Grip on Strait of Hormuz Tanker Traffic Oil Prices Crash as Traders Bet the War Is Over Why a Supply Crunch From Iran Could Send Oil Back Below $40 a Barrel Saudi Arabia’s Decided Who Its Future Superpower Partner Is, And It’s Not the US Solar Is the Cheapest Power in History, But States Are Retreating From It EIA: U.S.
| Product | Price | Change |
|---|---|---|
| Brent Crude | $102.14/bbl | +0.34% |
| WTI Crude | $96.90/bbl | +0.21% |
| EN590 Diesel | $846/MT | +0.18% |
| Jet Fuel A-1 | $1090/MT | +0.55% |
| Mazut M100 | $450/MT | -0.15% |
| Bitumen 60/70 | $470/MT | +0.08% |
| Sulphur Gran 99.5% | $470/MT | -0.44% |
| Urea 46% Gran | $650/MT | +1.12% |
| NPK 16-16-16 | $460/MT | -0.28% |
| Nat Gas TTF | $15.42/MMBtu | +0.92% |
Comments
Post a Comment